USD/JPY Price Forecast: Forms Symmetrical Triangle near multi-decade highs

WikiBit|2026-07-20

Abstract:The Japanese Yen edged slightly higher against the US Dollar on Monday, with USD/JPY slipping to near 162.36 as the Dollar faced pressure amid growing confidence that the Federal Reserve will leave interest rates unchanged at its July meeting; CME FedWatch odds for a hold rose to 85.6% from 65.8% last week. However, the Yen remained under pressure against other currencies due to escalating geopolitical tensions following US strikes on Iran. Technically, the pair consolidated near its multi-decade high of 162.84, with the Relative Strength Index at 53.83 indicating steady but not overextended buying pressure. Immediate resistance is at 162.84, while support lies at 162.26; a break below that level could expose a pullback toward 160.49.

The Japanese Yen (JPY) trades marginally higher against the US Dollar (USD) during the European trading session on Monday. The USD/JPY pair edges down to near 162.36 as the US Dollar faces pressure, with investors remaining confident that the Federal Reserve (Fed) will leave interest rates unchanged in the monetary policy announcement next week.

During the press time, the US Dollar Index (DXY), which tracks the Greenbacks value against six major currencies, trades slightly lower to near 100.70.

The CME FedWatch tool, the odds of the Fed leaving interest rates unchanged in the July meeting are 85.6%, up from 65.8% recorded last week. Traders have trimmed hawkish Fed expectations after the United States (US) Consumer Price Index (CPI) data release for June, which showed that both headline and core inflation cooled down.

Meanwhile, the Japanese Yen faces pressure against its other currency peers amid escalating geopolitical tensions. Late Sunday, US Central Command (CENTCOM) confirmed that it had concluded a ninth straight night of strikes against Iran, clarifying that the latest aggression was in retaliation for the killing of at least three American service members

USD/JPY technical analysis

USD/JPY trades at 162.36, holding a modest bullish bias as it consolidates near the multi-decade high of 162.84. The pair trades close to the 20-period Exponential Moving Average (EMA) at 162.31, reflecting a sideways trend.

Price, which sits just under the multi-decade high at 162.84, while a mid-50s Relative Strength Index (RSI) at 53.83 suggests steady but not overextended buying pressure.

On the topside, the multi-decade high at 162.84 is the immediate resistance; a break above that would allow the pair to extend its upside towards 164.00. On the downside, the rising trend-line support near 162.26 is the immediate support level; a sustained break below that zone would expose deeper pullbacks toward the 160.49 origin of the current uptrend.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

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